Globalization era has brought a great number of opportunities for both economic and cultural exchange across the world. It has allowe d businesses to access new markets and intensify competition. Large companies build factories in foreign countries to save cost and exploit those countries’ natural resources and labour power. On the one hand, it provides local citizens with more job opportunities and increase their living quality by bringing capital, technology, and management techniques; but on the other hand, it may lead to environmental and social damage, such as environmental pollution, low wages, and worker rights abuse.
Globalization has also lead to an increasing presence of multinational corporations in developing countries. Businesses set up their production in countries with lower labour and environment standards, which are beneficial for the companys bottom lines and help increase the host countries economic development. But these businesses do not always build the factories to help people out. They, instead, often exploit workers and use laxer environmental standards to maximize their profits.
Furthermore, the goods produced in less developed countries are often purchased by wealthy countries and shipped to the local market, which leads to low wages and lack of basic rights for the employees in these countries. This creates poverty and worse working environment for the locals.
The citizens in third-world countries are vulnerable to the exploitation of foreign companies since the governments there are often too weak to protect the interests of their own people. To deal with this problem, the government in host countries need to learn from the experience of other countries and set up and implement regulations to ensure companies adhere to the local labour laws, environmental regulations, and workplace safety laws. Meanwhile, multinational corporations must improve their management and absolutely follow local laws. Its also important for them to work with NGOs, governments and local communities to develop a responsible decision-making.
Business enterprises should also pay close attention to invest in training the local workforce in order to increase the social welfare in host countries. This can help people in developing countries gain knowledge and skills so they can build better lives for themselves.
Although globalization has created a lot of opportunities, it also can bring a lot of negative effects unless it is regulated properly. Governments as well as multinational corporations need to collaborate in finding ways to open up new markets without exploiting citizens and local environment. By working together, countries can benefit greatly from globalization.
